Legal Obligations and Best Practices for Companies in Reduction in Headcount and Missing Money Scenarios

Applied case Analysis

Table of Contents
Scenario A: Reduction in Headcount at the Domestic Division......................................................3
Summarise relevant legal obligations or considerations for companies in such a situation........3
Advise about how to manage this process in a way that both complies with the law and
principles of best practice HR......................................................................................................4
Scenario B: Missing Money in the Corporate Division...................................................................5
Summarise relevant legal obligations or considerations for companies in such a situation........5
Advise as to how to manage this process in a way that both complies with the law and
principles of best practice HR......................................................................................................6
REFERENCES................................................................................................................................8

Scenario A: Reduction in Headcount at the Domestic Division
Summarise relevant legal obligations or considerations for companies in such a situation
Redundancy
Redundancy refers to a state where a person is no longer useful for an organization. In
U.K., United Kingdom Labor Law governs the various rights and benefits which are received by
the workers (Bettinghaus, Goldberg and Kessler, 2019). Therefore, this law also includes rights
of employees on being dismissed. The facts in this case study meet the criteria as the persons
employed have completed at least one month in the organization. In Schwartz Group, there are
various workers who are not useful for the organization due to many reasons and therefore there
is a state of redundancy in the organization towards them.
Legal obligations
(i) The duty to consult arises in a situation when the layoffs have been planned in an organi-
zation.
(ii) The employees are the ones who have to be consulted with and the trade unions should
also be consulted.
(iii) There is a particular time which should be given to the workers in the organization when
this redundancy exercise is being carried out in the organization.
(iv) The content of the consultation should be as follows-
 Briefing regarding the prevailing situation
 The steps which the company needs to take
 The compensation which would be given to the employees who have been selected for
layoffs The timing of layoffs
Statutory redundancy pay